LEGISLATIVE FIX PASSES THE INFLUENTIAL HOUSE WAYS AND MEANS COMMITTEE
WASHINGTON, DC – December 11, the House Ways and Means Committee took action to repeal a 2017 cap on state and local tax (SALT) deductions after hearing from Rep. Dean Phillips about the cap’s harmful impact on Minnesota’s Third Congressional District. The committee passed theRestoring Tax Fairness for States and Localities Act in a bipartisan 24-17 vote. Phillips is an original co-sponsor of the legislation, which eliminates the cap on SALT deductions in 2020 and 2021.
The deficit-exploding 2017 tax bill capped SALT deductions at $10,000, penalizing residents of high-tax states like Minnesota. IRS Statistics on Income figures show that Phillips’s district ranks 35th out of all 435 congressional districts as the most-impacted by the SALT cap and is the second-most harmed district in the Midwest. At 47%, Minnesota’s Third District has the highest percentage of filers claiming the deduction in the state, and the highest average deduction – about $20,000. Continue reading “Repp. Phillips Leads Push for SALT Relief as Fix Passes Ways and Means Committee”